Adelanto continues to eye bankruptcy filing

City Council approves 2014-15 budget

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HesperiaStar.com

Posted Jun. 26, 2014 at 7:31 PM
Updated Jun 26, 2014 at 7:38 PM

Posted Jun. 26, 2014 at 7:31 PM
Updated Jun 26, 2014 at 7:38 PM

» Social News

ADELANTO — Adelanto city officials said dramatic cuts to its general fund mean its $2.61 million deficit will merely increase by $22,000 in 2014-15. However, that still might not be enough to stave off a bankruptcy filing, the city manager said Thursday.

“Bankruptcy is still something we will have to consider if the residents don’t support our effort to raise additional revenue,” City Manager Jim Hart said, referring to a utility-tax measure going on the ballot in November. “We have trimmed the budget to continue basic levels of service. But without added revenue, service levels including police and fire will have to be cut further.”

Adelanto City Council members approved the final budget on Wednesday at a regular council meeting. The city’s largest expense continues to be its public safety contracts with San Bernardino County Fire and Sheriff’s Departments, officials said. Those costs will increase by approximately $390,000 combined in 2014-15.

“If you look at the city’s budget, you’ve got basically $10 million in revenue and $7 million goes to police and fire,” Hart said. “The city’s payroll for all employees is $2.5 million. You can’t cut everybody else in the city out, then you’re providing absolutely no services.”

Adelanto Mayor Cari Thomas and Hart both contend that the city is “paying for sins of the past.” Since its incorporation in 1970, Adelanto officials have always balanced their budget with one-time revenues without identifying stabilizing financial sources, they say.

According to Hart, most California cities grappling with similar fiscal emergencies either have large debts to pay or increasing pension costs. But Adelanto doesn’t have either of those.

“Our problem is, truly, since the city was first incorporated, it has never sustained revenue flow to take care of its expenses,” Hart said. “It doesn’t receive enough tax revenue to cover even the basic police and fire service.”

The city’s $4.6 million in projected tax revenues in 2014-15 equals 35 percent of its budget, while other cities receive tax revenues totaling 65 to 70 percent, according to Councilman Jermaine Wright Sr.

“We’re doing the best we can do with what we have,” Wright said. “Until the city can really figure out a way to generate some real revenue, we’re just putting a Band-Aid on a gunshot wound until it goes forward.”

Two projects recently approved, Dollar General and Family Dollar stores, will bring increased sales tax revenue, Wright said. However, it’s still a drop in the bucket in repairing the city’s deficit, he said.

“We have to become more business friendly to attract businesses here,” Wright said. “We have over 50 square miles that we can use here. We need to get out and let big businesses know, let factories know: ‘Hey we’re here. Adelanto is waiting for you.’ ”

Brooke Self may be reached at 760-951-6232 or BSelf@VVDailyPress.com. You can also follow her on Twitter at @BrookeSelf or @DPEduNews.